10. Target Market Flashcards
Define “segmentation”
The division of the market into distinct segments, each characterised by particular tastes, requiring a specific marketing strategy
State the 4 variables of segmentation
- Geographic
- Demographic
- Psychographic
- Behavioural
Define a geographic variable
Where a consumer lives (country, region, city), and whether its urban or rural
What are demographic variables
- Age
- Gender
- Ethnicity
- Family status (single, children, etc)
- Income
- Education
- Occupation
- Socioeconomic status (position in society based on income, education and occupation)
What are psychographic variables
- Lifestyle (e.g. health-conscious)
- Personality (e.g. show-off)
- Values and beliefs (e.g. vegetarian)
- Interests (e.g. interest for specific region)
What are behavioural variables
- What benefit do they want (e.g. quality)
- When do they buy wine (e.g. special occasions)
- Where do they buy wine (e.g. special retailers)
- How often do they buy wine
- What is their level of brand loyalty
- What is their level of interest
- Are they early or late adopters
Explain global segmentation
There is no global segmentation, each country is different
Psychographic and behavioural segments share more than geographic and demographic segments
We can separate low-involvement and high-involvement consumers
Explain the difference between high-involvement and low-involvement consumers
High: deep interest, early adopters, spend more money
Low: little interest, late adopters, spend less money
State the consumer segments as made by Hall
Wine lovers:
- Great interest
- Great knowledge
- High income
- High education
Wine interested:
- Great interest
- Moderate knowledge
- Moderate income
- University education
Wine curious:
- Moderate interest
- Little knowledge
- Moderate income
- Moderate education
Define “market research”
Gathering data about a market segment in order to understand what it wants or needs
At what stage is market research especially important
When creating a marketing strategy.
After segmentation, we need to confirm the segment, before an expensive and timeconsuming marketing campaign is launched
What other use do we have for market research
Understanding demand, what features are favourable, what price are people willing to pay
Explain how the aims of market research are determined
- What information do we need (e.g. what price are consumers willing to pay)
- From who do we need data (e.g. one segment)
- How will the research be carried out
What are the different options to carry out market research
- Survey: questions about opinions, feelings, actions
- Focus group: discuss the topic
- Interviews: one-on-one discussions
- Observing consumer behaviour
- Secondary research: use existing data
How does marketing influence consumer behaviour
- Focus attention on something they need
- Focus attention on something they didn’t know they need
- Direct to where they can buy
- Highlight selling point of the product
